The Federal Court in the recent decision of Carson, in the
matter of Hastie Group Limited (No. 3) gave a timely reminder to
landlords that merely registering a security interest on the
Personal Property Securities Register (PPSR) may
not be enough to adequately protect the interests of a
Whilst the case was not specifically concerned with land leases
but leases of plant and equipment, the warning which emanates from
the decision needs to be carefully noted by landlords.
In the matter, administrators appointed to the company (the
subject of the secured interests) requested information from the
charge holders to enable the administrators to adequately identify
the plant and equipment subject to the charges. The administrators
were seeking to sell plant and equipment to raise funds and it was
difficult to determine what plant and equipment each of the
security interests related to because many of the registrations
used general wording and many other transitional interests had not
A number of charge holders failed to adequately respond and the
administrators applied to the Federal Court for directions to allow
them to dispose of the plant and equipment.
The Court held that the administrators were justified in
treating the unclaimed plant and equipment as property of the
company and selling the plant and equipment subject to a procedure
Points to note:
PPSR registrations should adequately identify the property
Landlords need to ensure they adequately deal with queries from
relevant parties seeking additional information about registrations
recorded on the PPSR and transitional security interests.
Please contact us if you have any queries in relation to the
PPSR and leases.
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In the years following the global financial crisis of 2008 many Australian investors lost their life savings as financial products failed and the Australian Stock Exchange shed over 3,000 points.
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